Key Insights
- HOOD stock price wavered as the equities market remained under pressure.
- Robinhood Chain has done well, with key metrics like TVL rising.
- The company faces some risks, including its valuation and the crypto winter.
HOOD stock has wavered in the past few days, moving from this month’s high of $120 to the current $102. This wavering has coincided with the ongoing volatility in the stock market. Still, on the positive side, the company’s recently launched Robinhood Chain is doing well, with most of its metrics soaring.
Robinhood Chain Metrics Are Doing Well
Robinhood Markets has expanded its product portfolio during the past year, introducing Robinhood Chain and several digital asset services.
One of the recent launches was Robinhood Chain, a layer-2 network it hopes will become the biggest in the crypto industry.
Early data shows that the platform has become highly successful and has already surpassed other well-known chains like Cardano, Zilliqa, and Polkadot.
DeFi Llama data reveals that the total value locked (TVL) in the platform has jumped to $212 million. It has more than doubled this week, with most of the assets moving to Morpho Blue and Uniswap. In contrast, Cardano, which was launched many years ago, has a TVL of just $70 million.
The same growth is happening in other areas in the crypto industry. For example, the amount of stablecoins in the platform has jumped to over $355 million. While this is a tiny amount in an industry worth over $308 billion, it is a sign that it is gaining traction among users.
Robinhood Chain has also succeeded in other areas, including in the important decentralized exchange (DEX) sector. Data shows that DEX protocols in the platform handled over $3.6 billion in volume this week, higher than the $3.1 billion a week earlier.
Robinhood Chain Will Not Make A Lot of Money For the Company
Robinhood Chain will not make substantial sums of money for the company, just as Base has not done so for Coinbase. Indeed, data shows that it has made $1.3 million since its launch.
Nonetheless, it can be a good platform for Robinhood by scaling its role in the crypto industry. Also, in the future, the company may decide to launch a HOOD token, which may see it valued at hundreds of millions or even billions of dollars. For example, Near Protocol, which has a smaller TVL, is valued at over $2.4 billion.
Another caveat is that it cannot be guaranteed that Robinhood Chain will continue thriving over time. For example, some chains that were highly popular after their launch, like Unichain, Ink, Mantle, and Berachain, have lost their market share over time.
The next important catalyst for the HOOD stock price is the upcoming earnings, which will shed light on its business. Recent earnings by companies like Goldman Sachs, Morgan Stanley, and JPMorgan have shown that their trading volume jumped in the second quarter. As such, there is a likelihood that Robinhood will report strong numbers later this month.
The main risk that Robinhood faces is that its business has become highly overvalued, with its forward P/E ratio rising to 46. Also, the company’s cryptocurrency business will likely continue struggling amid the crypto winter.
HOOD Stock Price Technical Analysis
The daily chart shows that Robinhood stock has pulled back in the past few days, moving from a high of $120 to the current $102. It has remained above the key support level of $92, its highest point in April this year.
The stock has formed a golden cross pattern, which happens when the 50-day and 200-day Exponential Moving Averages (EMA) cross each other. It has remained above the Ichimoku Cloud indicator.
Therefore, the stock will likely remain under pressure in the near term, and then resume the uptrend. If this happens, the stock will likely retest the all-time high of $154.
Crispus is a distinguished Financial Analyst at, bringing over 12 years of expertise in cryptocurrency markets, specializing in Bitcoin and altcoins. Renowned for his sharp insights at the nexus of market trends and breaking news, Crispus delivers actionable analysis to empower investors. His work is prominently featured across leading platforms, including BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com, cementing his reputation as a trusted voice in the financial world.
